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Sugarland stars Jennifer Nettles and Kristian Bush have reached an out-of-court settlement with former bandmate Kristen Hall over an ongoing royalties battle.

Founder member Hall quit the trio in 2006 and filed a lawsuit against the remaining members two years later (08), claiming she is owed $1.5 million) for helping to launch the group.

The legal case was set to be heard in an Atlanta, Georgia federal court on Monday (15Nov10) - but the trio has avoided a public showdown by settling the dispute on Friday (12Nov10), according to the Atlanta Journal-Constitution.